Biden-Harris Administration Boosts Puerto Rico’s Clean Energy with $861M Loan Guarantee

The Biden-Harris administration has announced a substantial $861.3 million loan guarantee through the U.S. Department of Energy (DOE) to finance the construction of solar photovoltaic (PV) farms and battery storage systems in Puerto Rico. This initiative aims to enhance the island’s energy infrastructure and provide clean, reliable power to local communities.

Supporting Clean Energy Infrastructure
The loan will fund two solar farms, located in Guayama (Jobos) and Salinas, along with two standalone battery energy storage systems (BESS). Clean Flexible Energy, LLC, an indirect subsidiary of The AES Corporation and TotalEnergies Holdings USA, Inc., will oversee the project under a joint venture. This investment aligns with the administration’s commitment to addressing the climate crisis and fostering energy resilience in communities affected by extreme weather.

Economic and Employment Impact
As part of the broader Investing in America agenda, the project is expected to generate approximately 750 construction jobs and over 50 full-time positions once operational. It also supports the Justice40 Initiative, aiming to direct 40% of federal investment benefits to disadvantaged communities, including many in Puerto Rico, which faces some of the highest energy costs in the U.S. Secretary of Energy Jennifer M. Granholm emphasized the critical importance of reliable energy access for residents facing climate-induced challenges.

Project Details and Community Benefits
Collectively known as Project Marahu, this initiative includes 200 MW of solar PV and up to 285 MW (1,140 MWh) of stand-alone battery capacity. The annual energy output from these solar installations is estimated at 460,000 MWh, enough to power around 43,000 homes, thereby enhancing Puerto Rico’s grid reliability and energy security while supporting its climate objectives.

A Step Towards Sustainable Development
This investment not only aims to improve energy access in Puerto Rico but also reflects a strategic move towards sustainable development, benefiting both the environment and the local economy as the island strives for a greener future.